Magento 2 Multi-Vendor Logistics Management – Logistics management is one of the core features of any marketplace or e-commerce store.
Why logistics management is important and how marketplaces need to select the right logistics partners.
Before that, I will try to explain about types of marketplaces, where logistics management is very much needed.
Let me clear a few terms before the explanation
- Seller OR vendor OR supplier ( b2b terms )- who are selling goods and items in the marketplace.
- Manufacturer – Product maker
This is the category where a lot of marketplaces work. How does it work? and why it is popular?
Dropshipping marketplaces are kind of small-scale marketplaces also delivery is quite slow in drop ship marketplace.
Dropship marketplaces are popular in B2B marketplace category or big manufacturing units. Example furniture industry where storing the products requires a huge amount of space.
Logistics Management is very less here at the Marketplace end. As the marketplace works as a platform that offers only product listing. The rest of the part will be done at the vendor’s end.
But Logistics management can be done at the vendor’s end. We will try to discuss the same in the next discussion.
Big marketplaces work in this way. Either its amazon or Flipkart. All of are using fulfillment by the marketplace.
Amazon offers FBA( Fulfillment by Amazon ) which is very popular in the marketplace.
Almost all the marketplaces follow the same kind of operation. Why it is important for the marketplaces like Amazon
If you will ask any Marketplace ( as we are building marketplaces from last 10-year check success stories – ) the biggest concern for marketplaces is Refund. It is important that the marketplace should have a mature RMA system.
Even after having an RMA system does not stop the refunds. This is the biggest pain point for the marketplaces.
Having central logistics can solve the problem of quality control by which refunds can be reduced a lot. Example – FBA kind of logistics management solve this problem.
The other benefit is the fast delivery of the products. unlike drop shipping marketplace, delivery services collect the goods and ship the items from the central warehouse.
They also provide logistics management as well. Based on the marketplace size you can use 3rd party logistics management companies as well.
Please let us know if you are looking for marketplace solutions. Thanks